Income From Salary Chapter- 07
1.12 Funds – clause 22 to 26
Already covered in above retirement benefits portion.
1.1 3 Special allowance – clause 39 and 40
The exemption u/c (39) has been withdrawn by Finance Act, 2021.
Local Travelling – Clause 40
Any income of a newspaper employee representing Local Travelling Allowance paid in
accordance with the decision of the Third Wage Board for Newspaper Employees constituted
under the Newspaper Employees (Conditions of Service) Act, 1973, published in Part II of the
Gazette of Pakistan, Extraordinary, dated the 28th June, 1980.
Specified allowances for Armed Forces Personnel – clause 39A
Any amount paid as internal security allowance, compensation in lieu of bearer allowance kit
allowance, ration allowance, special messing allowance, SSG allowance, Northern Areas
compensatory allowance, special pay for Northern Areas and height allowance to the Armed
Forces personnel.
1.14 Perquisites exemptions to President, Chief of Staff, Provincial Governors and Ministers
etc. [Clause (51 to 5 3 )]
(1) The perquisite represented by the right of the President of Pakistan, the Provincial
Governors and the Chiefs of Staff, Pakistan Armed Forces to occupy free of rent as a
place of residence any premises provided by the Government. (51)
(2) The perquisite represented by free conveyance provided and the sumptuary
(entertainment) allowance granted by Government to Provincial Governors, the Chiefs of
Staff, Pakistan Armed Forces and the Corps Commanders. (52)
(3) The following perquisites and allowances provided or granted by Government to the
Ministers of the Federal Government, namely :- (53)
(a) rent-free accommodation exceeds 10% of the basic salary of the Ministers
concerned;
(b) house-rent allowance paid by Government in lieu of rent-free accommodation in so
far as it exceeds Rs. 550 per month:
(c) free conveyance; and
(d) sumptuary (entertainment) allowance.
1.1 5 Residency and perquisites exemptions to Honourable Judges [Clause (55 and 56)]
Under clause (55) The perquisites represented by the right of a judge of the Supreme
Court of Pakistan or of a judge of High Court to occupy free of rent as a place of
residence any premises provided by Federal or Provincial Government, as the case may
be, or in case a judge chooses to resident in a house not provided by Government, so
much of income which represents the sum paid to him as house rent allowance.
Under clause (56) The following perquisites, benefits and allowances received by a
Judge of Supreme Court of Pakistan and Judge of High Court, shall be exempt from tax.
(a) Perquisites and benefits derived from use of official car maintained at Government
expenses-
(b) Superior judicial allowance payable to a Judge of Supreme Court of Pakistan and
Judge of a High Court.
(c) Transfer allowance payable to a Judge of High Court.
The following perquisites of the Judge of Supreme Court of Pakistan or High Court shall
also be exempt from tax during service, and on or after retirement.
(a) The services of a driver and an orderly.
(b) 1000 (one thousand) free local telephone calls per month.
(c) 1000 units of electricity as well as (25 hm3 of gas) per month and free supply of
water; and